LVR When purchasing in wife's name

Discussion in 'Loans & Mortgage Brokers' started by Beelzebub, 9th May, 2021.

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  1. Beelzebub

    Beelzebub Well-Known Member

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    Hi there

    Just wondering what the go is with purchasing in one name but having two names listed on the mortgage with LVR.

    Have a business, want to purchase a house but for asset protection reasons want the property in my wife's name. So two on mortgage one on title.

    Hoping to be able to purchase at 88-90% LVR with this structure?

    Is it possible?
     
    Beelzebub, 9th May, 2021
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You wont be buying in the wife's name. She will be buying a property.
    If you are on the loan it won't be protected like you think, even if not it won't.

    We do these sort of loans all the time and haven't had a problem with 2 on the loan, but our clients rarely go above 80% lvr. Best to check with your broker before entering contracts.

    And get some legal advice on asset protection
     
    Terry_w, 9th May, 2021
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  3. Beelzebub

    Beelzebub Well-Known Member

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    Thanks for the response Terry

    Yeh, my understanding is that will basically create a trust of which she will be the trustee and I will be the beneficiary and because I'm getting a benefit they can still sue me? But the structure still makes life a little more difficult for potential creditors?

    I intend on getting some specific legal advice but would like to go into the conversation with some idea of what's going on and how it works before hand.

    I suppose the other option would be a discretionary trust - but I don't like my chances?

    Making wifey work full time so she can qualify by herself - but I don't like my chances

    Doing it the traditional way and taking the risk that no one will sue me.

    But I don't have a whole lot to work with here.

    Any advice on a decent broker... Maybe yourself - that I could talk to?
     
    Beelzebub, 9th May, 2021
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Its not so much the overall structure of the ownership, but how it is transacted.
    For example Spouse A owning the property with Spouse B being a guarantor on the loan and not contributing anything for the purchase or ongoing costs v Spouse A owning and Spouse B paying everything for the property.

    Same with a discretionary trust. People think there is magic in saying the words 'as trustee for' once and then forgetting about the trust relationship.
     
    Terry_w, 9th May, 2021
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